Global economic recovery is positive for India’s economy in the current phase of turmoil, says consultancy firm EY.
In its Economic Pulse report, the consultancy firm said: “India’s exports have continued to perform well. India’s total exports of goods have grown 59 per cent over May 2020 and remained stable compared to April 2020.”
“Due to Covid’s second wave services exports in India took a hit in April, and only a slight increase was accounted in May. However, the Services exports still grew 6 per cent vis-a-vis May 2020.”
However, India’s total imports of non-oil goods has come down by 17 per cent in May over April 2021.
“This indicates sluggish demand in the domestic market.”
In terms of rural economy, the report, cited that in April 2021, fertiliser sales have declined vis-a-vis April 2020.
Besides, tractor sales has fallen sharply in April and May 2021.
“These highlight risk of rural economy being impacted as Covid-19 cases spread.”
“MNREGA works data indicates that the migration of labour from cities to rural areas has been fairly limited in the second wave.”
On the overall scale, it said that both recorded Covid cases and deaths, are declining and that vaccinating the entire population is the best economic strategy.